Today Fannie and Freddie are being bailed out. A Sunday, no less. I can hear the chuckling all the way from Greenwich CT, and the D.C. and Dallas suburbs.
I quote the associated press, in wondering why these two titans of mortgage-backed securities have come to need help from you, the taxpayer:
"How could you look at an enormous rise in prices and not think there was a potential for them to fall?" said Christopher Thornberg, a principal with Beacon Economics in Los Angeles.
Gee, good question Yogi. How about because it's actually kind of fun to take risks when there is no actual downside?
Apparently, everybody knew the government was going to bail them out if they ever got in trouble.
Pretty good racket. How can I get in? LOL.
I can't come here and argue that we shouldn't bail them out. Only that they never should have existed in the first place.
Did they really do something the market couldn't have done for itself? And suppose they really did. Since it was apparently an open secret all along that they represented the US Treasury, why were they not simply wholly a part of the government? You know, in good times and in bad?
Ah, but if they were a government agency, then those guys in Greenwich CT, and in VA and TX would have to find a different job, rather than robbing on your tax money (both paid and prospective).
But lest you all think I'm just here to bring everyone down, I do have one good suggestion. Why don't we all write to our senators and ask them how long it will be before the people involved in both running and regulating Fannie Mae and Freddie Mac will be in prison?
I mean, I assume even though they stole billions of dollars from us, rather than a car stereo, they're still thieves, right? And I think they haven't even gone into hiding yet.
I just want to try to instill some discipline lest we have an even wilder, more unruly orgy of treasury looting.